Yum! Brands Doubles Its Quarterly Dividend

Dec 5, 2006

LOUISVILLE, KY, December 5, 2006 – Yum! Brands Inc. (NYSE: YUM) announced today that its Board of Directors approved a 100% increase in the Company’s quarterly cash dividend from $0.15 to $0.30 per share. This higher cash dividend payment will be distributed March 30, 2007, in the company’s fiscal second quarter.

David C. Novak, Chairman and Chief Executive Officer, said, “As a result of our continued confidence in the expansion of our global business with high returns and substantial cash flow generation, I am very pleased to inform our shareholders that we are doubling our quarterly dividend rate. By increasing our quarterly cash dividend to $0.30 per share, we have tripled our quarterly dividend-payment rate to shareholders since we initiated dividends in May 2004.

“Our business generates significant free cash flow, even after investing capital in all our growth opportunities around the world, and we expect to return this free cash flow to our shareholders in the form of substantial share buybacks and dividend growth. For 2006, we expect to pay out over $1 billion to our shareholders, including dividends and share buybacks, which we expect will reduce our share count by 6%. In addition, for 2007 we expect to return over $1 billion to our shareholders, with share buybacks reducing our share count by at least 3% and an attractive dividend yield. We fully expect to continue to return significant free cash to our shareholders for the foreseeable future.

“With the unique growth opportunities of our global portfolio and our significant cash generation capability from all our businesses, we expect to continue to return substantial free cash flow to our shareholders, proving once more why we are not your ordinary restaurant company.”

Dividend Increase Details
The company’s board of directors approved a 100% increase in the quarterly cash dividend from $0.15 per share to $0.30 per share.

This higher cash dividend payment will be distributed March 30, 2007, in the company’s fiscal second quarter, to shareholders of record at the close of business March 9, 2007.

Dividend History
In May 2004, the company announced the initiation of a regular quarterly dividend. In May 2005, the company announced an increase in the quarterly dividend by 15%, from $0.10 to $0.115 per share. In May 2006, the company announced the quarterly dividend would be increased again by 30%, from $0.115 to $0.15 per share.

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include those identified by such words as may, will, expect, project, anticipate, believe, plan and other similar terminology. These “forward-looking” statements reflect management’s current expectations regarding future events and operating and financial performance and are based on currently available data. However, actual results are subject to future events and uncertainties, which could cause actual results to differ from those projected in this announcement. Accordingly, you are cautioned not to place undue reliance on forward-looking statements. Factors that can cause actual results to differ materially include, but are not limited to, changes in global and local business, economic and political conditions in the countries and territories where Yum! Brands operates, including the effects of war and terrorist activities; changes in currency exchange and interest rates; changes in commodity, labor and other operating costs; changes in competition in the food industry, consumer preferences or perceptions concerning the products of the company and/or our competitors, spending patterns and demographic trends; the impact that any widespread illness or general health concern may have on our business and the economy of the countries in which we operate; the effectiveness of our operating initiatives and marketing, advertising and promotional efforts; new-product and concept development by Yum! Brands and other food-industry competitors; the success of our strategies for refranchising and international development and operations; the ongoing business viability of our franchise and license operators; our ability to secure distribution to our restaurants at competitive rates and to ensure adequate supplies of restaurant products and equipment in our stores; unexpected disruptions in our supply chain; publicity that may impact our business and/or industry; severe weather conditions; effects and outcomes of pending or future legal claims involving the company; changes in effective tax rates; our actuarially determined casualty loss estimates; new legislation and governmental regulations or changes in legislation and regulations and the consequent impact on our business; and changes in accounting policies and practices. Further information about factors that could affect Yum! Brands’ financial and other results are included in the company’s Forms 10-Q and 10-K, filed with the Securities and Exchange Commission.

Yum! Brands Inc., based in Louisville, Kentucky, is the world’s largest restaurant company in terms of system restaurants with over 34,000 restaurants, which includes over 2,000 licensed restaurants, in more than 100 countries and territories. Four of the company’s restaurant brands — KFC, Pizza Hut, Taco Bell and Long John Silver’s — are the global leaders of the chicken, pizza, Mexican-style food and quick-service seafood categories respectively. Yum! Brands is the worldwide leader in multibranding, which offers consumers more choice and convenience at one restaurant location from a combination of KFC, Taco Bell, Pizza Hut, A&W or Long John Silver’s brands. The company and its franchisees today operate over 3,400 multibrand restaurants. Outside the United States in 2005, the Yum! Brands’ system opened about three new restaurants each day of the year, making it one of the fastest growing retailers in the world. For the past four years, the company has been recognized as one of Fortune Magazine’s “Top 50 Employers for Minorities.” It also has been recognized as one of the “Top 50 Employers for Women” by Fortune, one of the “40 Best Companies for Diversity” by Black Enterprise Magazine for the past two years and one of Black Enterprise’s “30 Hottest Franchises for 2006,” one of the “Corporate 100 Companies Providing Opportunities for Hispanics” by Hispanic Magazine, one of the “Top 50 Corporations for Supplier Diversity” by Hispanic Trends Magazine and by BusinessWeek as one of the “Top 15 Companies for In-Kind Corporate Philanthropy.”